Seattle-based game studio Neon Machine has secured $19.5 million in funding, led by Gala Games, to expand its blockchain first-person shooter Shrapnel worldwide and launch a localized version for the Chinese market.
Joining the Gala Games Ecosystem
Shrapnel’s move from Avalanche to GalaChain marks a major shift for the studio. The transition supports the game’s compliance with Chinese regulations while maintaining its web3 features for global players. The SHRAP token will now operate on GalaChain, while the GALA token will handle transaction fees, including cross-chain transfers between the global and Chinese versions.
Neon Machine plans to use up to 10% of Chinese revenue to buy back SHRAP tokens from the market, aiming to strengthen liquidity and long-term value.
Breaking Into the Chinese Market
Shrapnel has become the first foreign web3 game approved to run on China’s government-backed TCC. This allows legal ownership, trading, and cross-border movement of in-game assets, potentially connecting the title to over 600 million Chinese gamers.
The localized version is planned for late 2025, with a full release in early 2026. Local distribution and compliance will be managed by Lingjing Game Labs, the digital division of the People’s Daily.
What Makes Shrapnel Stand Out
Shrapnel is a free-to-play extraction shooter set in a competitive, loot-driven environment. Players enter The Sacrifice Zone to gather Sigma, a resource that enhances abilities, while battling opponents to secure and extract valuable items.
The game features dynamic events such as meteor showers and shifting loot points, and is built around true digital ownership, allowing players to buy, sell, and trade on-chain items.
In just 27 days of paid early access in 2024, players completed over 3.7 million matches. Public playtests are expected to continue as the game moves toward full release.
A Strategic Partnership for the Future
Eric Schiermeyer, CEO of Gala Games, said the partnership is a milestone for both global gaming and Shrapnel, emphasizing the combination of thrilling gameplay with legally recognized digital asset ownership. By linking GalaChain to TCC, the collaboration aims to create a compliant bridge for asset trading between China and global markets, set to launch in early 2026.